Investing.com — Analyst Moves in AI for This Week

BofA on Nvidia stock: ‘Compelling growth at compelling valuation’

Bank of America maintains its Buy rating on NVIDIA Corporation (NASDAQ:NVDA), citing “compelling growth at a compelling valuation.”

Despite short-term challenges such as Blackwell product line delays, DOJ antitrust scrutiny, weak seasonality, and interest-rate concerns, BofA sees these as attractive buying opportunities. Currently trading at about 27x its expected CY25 price-to-earnings (P/E) ratio, Nvidia is in the lowest quartile of its five-year range, indicating a favorable entry point.

BofA highlights Nvidia’s consistent growth due to demand for its previous Hopper chips and predicts its significant role in the next-generation large language models (LLMs) like OpenAI’s GPT-5.

Microsoft, Adobe Added to WF’s ‘Signature Pick’ Portfolio

Wells Fargo has added Microsoft Corporation (NASDAQ:MSFT) and Adobe Systems Incorporated (NASDAQ:ADBE) to their “Signature Picks” portfolio, citing Microsoft’s “cloud positioning and AI leadership.”

Analysts note that AI has driven strength in Microsoft’s Azure cloud division and initiated a position in Adobe, highlighting design as a significant use case for generative AI.

AI Stocks Not in a Bubble but Concentration Risks Elevated

Goldman Sachs analysts dismissed bubble concerns in the AI sector but warn of high concentration risks due to a few large-cap companies dominating the market. The strategists noted that since 2010, technology has accounted for 32% of global equity performance.

The “Magnificent Seven” major U.S. tech companies showcase strong earnings and AI investments, not indicative of irrational exuberance. However, concentration at historic levels poses a potential risk.

Mizuho Adds Micron, Oracle Stocks to Top Picks List

Mizuho analysts included Micron Technology Inc (NASDAQ:MU) and Oracle Corporation (NYSE:ORCL) in their Top Picks List, anticipating Micron will benefit from better pricing in DRAM and NAND markets thanks to AI-related growth. Mizuho expects Micron’s HBM market share to rise significantly by 2025.

For Oracle, the analysts believe its cloud infrastructure is undervalued and predict improved operating margins by FY26.

SMCI Stock Downgraded at JPMorgan

JPMorgan downgraded Super Micro Computer (NASDAQ:SMCI) from Overweight to Neutral, citing regulatory uncertainty and competitive pressures in the AI server market. They advise new investors to wait until the company regains regulatory compliance before investing, reducing their price target significantly.